UNCITRAL MODEL LAW

ON INTERNATIONAL
COMMERCIAL
CONCILIATION
INTRODUCTION

• UN General Assembly adopted Model Law on International Commercial

Conciliation of the United Nations Commission on International Trade
Law
• Amicable Settlement of international commercial disputes
• use of such dispute settlement methods results in significant benefits,
such as reducing the instances where a dispute leads to the termination
of a commercial relationship, facilitating the administration of
international transactions by commercial parties and producing savings
in the administration of justice by States
• By adopting such a model legislation on the methods that is acceptable
to States with different legal, social and economic systems would
contribute to the development of harmonious international economic
relations
• Model Law will significantly assist States in enhancing their legislation
governing the use of modern conciliation or mediation techniques and in
formulating such legislation where none currently exists
• It can provide uniformity in the law of dispute settlement procedures and
specific needs of international commercial conciliation practice.
SCOPE- ART- 1
• Application- International commercial conciliation
• Commercial- any trade transaction for the supply or exchange of goods
or services; distribution agreement; commercial representation or
agency; factoring; leasing; construction of works; consulting;
engineering; licensing; investment; financing; banking; insurance;
exploitation agreement or concession; joint venture and other forms of
industrial or business cooperation; carriage of goods or passengers by
air, sea, rail or road – but not limited to this
• Conciliation- process, whether referred to by the expression conciliation,
mediation or an expression of similar import, whereby parties request a
third person or persons (“the conciliator”) to assist them in their attempt
to reach an amicable settlement of their dispute arising out of or relating
to a contractual or other legal relationship. The conciliator does not have
the authority to impose upon the parties a solution to the dispute.
• International conciliation- their places of business in different States
- The State in which the parties have their places of business is different
• Place of business- place having closest relationship to the agreement to
conciliate or if no place of business then it is the party’s habitual
residence
• It applies to conciliation
- agreed by parties,
- obliged by law,
- suggested by court or tribunal or government
• It does not apply to judicial or arbitral proceedings, attempts to
facilitate a settlement
COMMENCEMENT- ART 4
• Day on which the parties to that dispute agree to engage in conciliation
proceedings.
• If a party that invited another party to conciliate does not receive an
acceptance of the invitation within thirty days from the day on which the
invitation was sent, or within such other period of time as specified in
the invitation, the party may elect to treat this as a rejection of the
invitation to conciliate.
CONCILIATOR- ART 5
• 1 conciliator- unless the parties agree that there shall be two or more
conciliators.
• Appointment- agreement by parties or
- assisted by institution or person,
- independent and impartial,
- nationality other than the nationality of the parties
CONDUCT OF CONCILIATION- ART 6
• Parties can agree and set rules
• If it fails- the conciliator may conduct conciliation
appropriately
• Fair treatment
• At any stage- settlement proposals can be put forward by the
conciliator
• The conciliator may meet or communicate with the parties
together or with each of them separately.- Art 7
• Disclosure of information- Art. 8
• Confidentiality- Art 9
EVIDENCE- ART 10
• What cannot be evidence at arbitration or judicial proceedings
- An invitation by a party to engage in conciliation proceedings or
willingness to participate
- Views expressed or suggestions made by a party
- Statements or admissions made by a party
- Proposals made by the conciliator
- willingness to accept a proposal
- A document prepared solely for purposes of the conciliation proceedings
• But these evidences do not become inadmissible as a consequence of
having been used in a conciliation.
TERMINATION- ART- 11
• Conclusion of a settlement agreement by the parties
• Declaration of the conciliator
• A declaration of the parties
• Declaration of a party to the other party
• Conciliator can act as arbitrator, if the parties agrees- Art 12
• If the parties conclude an agreement settling a dispute, that
settlement agreement is binding and enforceable . . . [the
enacting State may insert a description of the method of
enforcing settlement agreements or refer to provisions
governing such enforcement]- Art 14
 ASSISTANCE FROM THE UNCITRAL
SECRETARIAT
• In line with its training and assistance activities, the
UNCITRAL secretariat may provide technical consultations for
Governments preparing legislation based on the Model Law or
considering adhesion to one of the international trade law
conventions prepared by UNCITRAL.